Gartner: Foundry orders to decline in second half of 2012
According to a report by Gartner, semiconductor manufacturing foundries will see a decline in orders for the second half of 2012, despite showing strong revenue in Q2 due to inventory restocking.
The report states that the weak macroeconomic picture has continued to cause low demand for electronic products. Foundry revenue is set to grow 9.9% in 2012 and 9% in 2013, with the foundry services sector experiencing a compound annual growth rate of 8.6% from 2011 through 2016. This is greater than the overall semiconductor industry growth rate of 4% for this period.
Gartner says the increase is driven by the trend for integrated device manufacturers, particularly from Japan, to outsource more of their manufacturing requirements to save capital and mitigate risk.
Foundry capital spending is predicted to increase 1.8% in 2012 to $17.03billion and stay within the $16 to $17bn range during the forecast horizon. The overall utilisation rate of foundries is expected to stay in the low 80% range.
